Technical Analysis

Dollar stays on the backfoot ahead of North America trading

The dollar is still suffering a bit of a hangover from the softer ISM services report on Friday. Broader market sentiment remains on the optimistic side with equities and bonds more bid so far in European trading. The dollar drop isn’t extending too much as we see ranges consolidate but the greenback is still lower across the board.

Of note, USD/CAD is down 0.5% to 1.3370 near the lows as the pair threatens a further downside run below its 100-day moving average. Meanwhile, AUD/USD is also up 0.5% to 0.6910 as buyers seek a breakout move towards 0.7000, though off earlier highs of 0.6947. The only dollar pair bucking the trend is USD/JPY, which is up 0.2% to 132.35 as noted earlier here.

Elsewhere, EUR/USD is up 0.4% to 1.0670-80 levels as we see buyers take another run at 1.0700 upon holding a push back towards the broken trendline support (white line) from before:

The dollar’s drop comes against the backdrop of higher stocks, with European indices seeing gains of around 0.3% to 0.5% while S&P 500 futures are up 16 points, or 0.4%, currently. Meanwhile, 10-year Treasury yields are up 2.4 bps to 3.595% as bonds also stay slightly bid today.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button